What taxation applies to capital gains?
For gains made in 2007 (tax declaration completed in 2008): The tax provisions applicable to capital gains on sales of negotiable securities realized in 2007 set the level of tax on chargeable capital gains at 27% (including 11% of various social security contributions) when the annual amount of the sales is in excess of 20,000 euros. The tax provisions applicable to capital gains on the sale of negotiable securities realized with effect from January 1st, 2006 introduce a new system giving progressive tax exemption for capital gains arising from share sales. We draw your attention to the fact that this exemption does not apply to the social security contribution (currently 11%). When shares have been held for 5 years, an exemption of one third per year is granted as from the 6th year, so that complete exemption is achieved after 8 years of continuous ownership. This system also applies to losses on the sale of shares, hence corresponding losses can only be deducted for 8 years rather t
